16 Page Lettings Guide

choose A landlord’s guide to SLCA’s letting service

Tailor made solutions for busy landlords SLCA offers a comprehensive letting and property service designed to take the hassle out of letting your property.

Expertise at your service Are you are looking for help with finding and screening suitable tenants? Perhaps you want the peace of mind

Why busy landlords choose SLCA

and convenience of a comprehensive round-the-clock letting and property management service that takes care of everything? Whatever level of support you need,

✓

Experienced, attentive and knowledgeable staff

✓

Flexible service options, competitively priced

✓

Open and transparent fees with no hidden charges

✓

Up to date legal documents and advice on property rental matters

✓

Independent property appraisals and achievable rental valuations

✓

Extensive internet advertising on the UK’s top property portals

✓

A pre-qualified database of waiting tenants

✓

In-house comprehensive tenant referencing service with full credit check

✓

Comprehensive written and photographic inventories

✓

Full client money protection

✓

Registered with the Deposit Protection Service & MyDeposits

✓

Dedicated Property Manager (Full Management Service only)

✓

Database of expert and reliable tradespeople on call

✓

Established in Marlborough since 1983

we can provide the service that is right for you.

We have more than 30 years’ experience in letting properties within a twenty mile radius of Marlborough.

Our clients range from private landlords with one small rental property, to buy-to-let investment landlords with a portfolio of varied properties.

As standard we have 4 different levels of service:

1 Marketing and Introduction Only 2 Let Only 3 Letting and Rent Collection 4 Full Management All our services can be tailored to suit your individual needs and we will provide a written quote with absolutely no obligation.

We understand that becoming a Landlord can be a daunting experience. Please take a look through this booklet for a step by step guide to what’s involved in letting a property. We have included information on your legal obligations and practical matters as well as an overview of all the services we offer.

So whether you are thinking of letting your property for the first time or you’re an experienced landlord looking for a new letting agent service, please get in touch to discuss your requirements.

Professional recognition

3

We tailor our marketing approach to the type of tenant you are looking for to attract genuine interest

Getting started Our knowledge of the local rental market coupled with a tailored approach to advertising will help you set an achievable rent and find the right tenant.

Property appraisal and valuation

During the assessment we will be happy to discuss the

We offer an independent assessment of your property

lettings process with you and answer your questions.

by one of our trained and experienced members of staff.

If you are a first time landlord you will have plenty of

This is free of charge and with absolutely no obligation.

opportunity to find out more about what is involved in

We will visit the property and advise you of any work required to meet regulatory requirements.

We will also offer advice on any other actions you need to take before you let the property including necessary repairs or refurbishments.

It’s important that you set a rent that is competitively priced, fair and achievable. Using our extensive knowledge of the local rental market, we will assess how much your property could achieve in the current climate. Our rental valuation will take into consideration the location, size, standard and condition of the property and whether it will be let furnished, part furnished or unfurnished.

letting a residential property.

Effective advertising and marketing At SLCA we use the very latest technology and proven marketing techniques to advertise our rental properties.

We use the following major property portals, Rightmove, Zoopla and Prime Location. Our own website www.slca.net has been specially designed to showcase our clients properties and automatically optimises the display to work and look good on tablets and smartphones. This gives your property the highest possible online exposure whichever device your potential tenant uses.

Our online marketing activity includes social media through our Facebook pages and Twitter account and we supplement this with press advertising, email marketing campaigns and our distinctive To Let boards.

We tailor our marketing approach to the type of tenant you are looking for to attract genuine interest. Once instructed, one of the first things we do is to match a property with our list of waiting tenants and send them your property particulars by email with alerts via SMS text message.

High quality photography and floor plans are fundamental to presenting your rental property in the best possible way. We take the time to capture the best

picture of each room and show off its best features, ensuring every picture looks professional.

Location is a primary factor for people when choosing somewhere to rent and our online property particulars include information on transport links, schools, shopping and leisure facilities and other local amenities with useful maps of the area.

Securing the most suitable tenant As a landlord, you need peace of mind that the right tenants will be living in your property. All potential tenants on our rental database are pre-qualified by us before we carry out viewings to ensure they are suitable.

All property viewings are accompanied and conducted by a fully trained member of our team and we provide prompt and honest feedback. We will keep you upto-date on progress and will let you know as soon as someone applies to rent your property.

We conduct referencing in house so that we have a comprehensive and detailed view of your prospective tenant. We use a reputable credit referencing agency to obtain financial and credit references. This vetting process is a critical step in securing a reliable tenant for you.

5

Preparing your property to let–the legal essentials Our experienced lettings team will provide the latest information and guidance to ensure you meet all your legal obligations as a Landlord.

Energy Performance Certificate All properties for rent (unless Grade II Listed) must

Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 2010

have an Energy Performance Certificate (EPC) before

Upholstered furniture and soft furnishings supplied

any marketing or viewings can take place. An EPC rates

in a rented property must comply with current

energy efficiency and its environmental impact and is

regulations. This includes, but is not limited to, bed

valid for ten years for rental properties. A copy of the

frames, mattresses, headboards, sofabeds, pillows,

EPC must be made available to tenants before entering

cushions, seat pads and any garden furniture that may

into a tenancy agreement. If you do not have an EPC for your property, SLCA can arrange an assessment for you.

Safety 1

Gas Safety

Under the Gas Safety (Installation and Use) Regulations 1998, landlords have a legal obligation to make sure all gas pipework, appliances, fittings and flues are safe to use and maintained in a safe condition. Every gas appliance and

2

be used indoors. Items which comply will have a suitable permanent label attached. All non-compliant items must be removed before a tenant moves in. Bedding, carpets, curtains and any furniture made before 1950 are exempt.

3

Electrical Safety

Landlords are required to ensure that the electrical

flue must be tested for gas safety every 12 months. A Gas

installation in a rented property is safe when tenants

Safety record must be provided to existing tenants within

move in and maintained in a safe condition. Although not

28 days of the annual safety check, or to new tenants

a legal requirement, it is strongly recommended that you

before they move in and you must keep copies yourself

have the property inspected and tested by a registered

for two years. All installation, maintenance and safety

electrician every five years and arrange Portable

checks must be carried out by a Gas Safe registered

Appliance Testing (PAT test) once a year to ensure

engineer. We can arrange this for you.

electrical appliances are safe and fit for purpose.

Council inspectors look 4

Smoke and Carbon Monoxide Detectors

New regulations introduced in October 2015 require landlords to install smoke alarms on every floor of their rental property and test them at the start of every tenancy

29

at health and safety areas during an HHSRS inspection!

and to install carbon monoxide alarms in high risk rooms such as those where a solid fuel heating system is installed.

5

Housing Health and Safety Rating System (HHSRS)

If you own a property and rent it out, your local council may decide to do an HHSRS inspection. Inspectors look at 29 health and safety areas.

Consent to Let If your property is mortgaged, you must obtain written consent to let from your mortgage lender.

If it is leasehold, your lease may require written consent from your landlord before you can sub-let.

Houses in Multiple Occupation (HMO) If your property is let to at least three tenants who share toilet, bathroom or kitchen facilities but are not from one household or family – sometimes called a ‘house share’ – it is a House in Multiple Occupation’ (HMO).

Depending on the size of the property, the number of tenants and the area, you are likely to need an HMO licence from your local council plus an HHSRS inspection. We can advise you on this.

Buildings Insurance Landlords are required by law to take out buildings insurance for rental properties. We advise our clients to also consider contents insurance and policies to cover rent guarantee and legal expenses.

7

Letting your property– moving your tenant in Our professional lettings service ensures everything is in place for a smooth and trouble-free start to renting out your property.

Our inventory provides a crucial legal reference in case of any discrepancy or claim against a tenant’s deposit at the end of a tenancy

Tenancy Agreement This is a legally binding agreement, setting out the rights and obligations of both Landlord and Tenant. Most residential property is let on an Assured Shorthold Tenancy (AST) for an initial fixed term of 6 or 12 months.

We can advise on all options available to help you make an informed decision on areas of responsibility, conditions of tenancy, how and when the rent will be reviewed and notice terms. We will prepare all the paperwork and draw up a comprehensive legal document for signing.

If we are fully managing your tenancy and rental property for you, then the tenancy agreement will include those activities we will be responsible for on your behalf.

Inventory / Schedule of Condition All of the inventories produced for SLCA clients contain a full written description of the property, its contents and schedule of condition inside and out including the

scheme yourself. Landlords should be aware that there

walls, flooring and all fixtures, fittings and furnishings

are significant penalties for failing to comply with deposit

provided with photographic evidence. This provides a

protection requirements.

crucial legal reference in case of any discrepancy or claim against a tenant’s deposit at the end of a tenancy.

We normally collect a deposit from the tenant which is equal to one and a half months rent. SLCA is registered

Utilities & Council Tax

with The Deposit Protection Service and MyDeposits

Usually, it is the tenant’s responsibility to pay utility bills

which means your tenants deposit will either be held

and council tax. We can organise all meter readings and

by a custodial deposit scheme or an insurance backed

arrange the transfer of water rates, gas, electricity and

deposit scheme depending on which we believe to be

Council Tax accounts to the tenant.

most suitable for the duration of the tenancy. We will also

Deposits Schemes

provide your tenant with the name and contact details

A deposit is paid by the tenant at the start of a tenancy to safeguard against damage. Since April 2007, all new

of the TDP scheme and its dispute resolution service, which is a legal requirement.

Assured Shorthold Tenancies must be registered with a

Keys

government-backed tenancy deposit protection (TDP)

You should provide at least one set of keys for each

scheme within 30 days of receipt of the deposit. If we

tenant. Where we will be managing the property for

are not providing our Full Management Service to you,

you, we will also require a full set which will be coded for

then you would need to register the deposit with a TDP

security purposes. We can arrange to have duplicates cut.

9

Letting your property– day to day management Once your tenant has moved in, we can take care of your property, tenancy arrangements and your landlord duties throughout the tenancy and beyond.

Collecting rent

2

Overseas Landlords

SLCA offers a Rent Collection Service on its own or as

Under the Non-Resident Landlord (NRL) Scheme,

part of its Full Management Service for busy landlords.

your lettings agent will need to deduct tax from the

We collect rent monthly unless the Tenancy Agreement

rental income and pay the tax directly to HM Revenue

specifies otherwise. Occasionally, tenants may

& Customs. If you choose not to use a lettings agent to

experience financial difficulties and our rent collection

collect rent, then your tenant will be legally responsible

service includes chasing any late payments. We will

for collecting and paying the tax to HMRC. Alternatively,

notify you at the earliest opportunity of any rent arrears.

landlords living overseas can apply for approval to

You can protect against loss of rental income with an

receive rental income with no tax deducted. Full details

insurance policy.

of the NRL Scheme are available from HMRC.

We pay the rent to landlords monthly by BACS (net

Inspections, maintenance and repairs

of our fees and any disbursements, bills and income

The practicalities of being a landlord can be very time-

tax if appropriate) and provide monthly income and

consuming. With our Full Management Service we take

expenditure statements.

care of all the day to day management and upkeep of your

Rental income and taxation As a landlord, you are responsible for assessing your own tax for rent received. Below is some basic guidance on taxation matters relevant to landlords; however we would always recommend you seek independent financial advice from an accountant on tax matters.

1

Income Tax

rental property so you don’t need to worry about it.

We will carry out regular routine inspections at a mutually convenient time agreed with the tenant. This will involve a visual inspection, assessing any wear and tear and organising maintenance and compliance checks. If we identify any problems we will advise you and depending on our agreement with you, we can arrange for repairs and any work to be done on the

Rental income is liable to tax, although a number of

property. Payment for this will be deducted from rent

expenditure items can be offset against rental profit. You

received. We have a network of reliable and trustworthy

would also need to pay Class 2 National Insurance if the

contractors we can call on to deal with routine repairs or

work you do counts as running a property business.

emergencies at very competitive rates.

With our Full Management Service we take care of all the day to day management and upkeep of your rental property so you don’t have to worry about it

Tenancy renewals, reviews and notices

possession of the property. Assuming there are no issues

We will handle all tenancy renewals, including rental

and all paperwork is completed, utility companies notified

reviews, for you. If you decide to increase the rent we will

and you have a forwarding address for the tenant, the

issue the relevant notice informing your tenants. If you

landlord should return the tenant’s deposit. This is all

wish to end a tenancy, we will serve notice to your tenants

included as part of our Full Management Service.

in line with all legal process and timing requirements and

Remarketing

manage all the end of tenancy administration.

No landlord wants a vacant property. If a tenancy is

End of tenancy checks and deposit returns

not renewed, we offer landlords who take our Full

At the end of a tenancy the landlord should ensure

Management Service an automatic property appraisal,

the property is in a good, clean condition before the

rental valuation and remarketing service until we find

tenant checks out, take back the keys and formerly take

a new tenant.

11

Service levels to suit you SLCA offers landlords a choice of 4 different levels of service. The option you choose will depend on how hands-on you want to be, the level of risk you are prepared to accept and the time and energy you have available to manage your property investment and tenancy.

1 Marketing and Introduction Service

2 Let Only Service

Perfect for landlords who have the time and

Perfect for landlords who want to manage the

experience to manage their own investment

tenancy themselves but want to ensure all the

but want the reassurance and convenience of a

paperwork is completed professionally

professional marketing and tenant vetting service

3 Letting & Rent Collection Service

4 Full Management Service

Perfect for landlords who will manage the

Perfect for landlords who have limited time, or are

upkeep and maintenance themselves but don’t

travelling/living overseas and want to outsource

want the trouble of rent collection and legal

the entire day to day tenancy management

compliance

and upkeep of their property investment to a professional property management agent

Any level of service can be tailor-made to suit your needs; simply contact us to discuss your requirements

Property appraisal and rental valuation Marketing and advertising Source suitable tenants Accompanied viewings Legally required compliance paperwork In-house referencing and credit checks Draw up tenancy agreement Collect deposit and first month’s rent Register deposit with TDP scheme Inventory and statement of condition Oversee tenant check-in Transfer utility supplier accounts Rent collection and payment to landlord Deal with rent arrears Itemised monthly rental statement Conduct regular property inspections Arrange routine servicing and maintenance Arrange mandatory safety checks Deal with the day to day tenancy issues Tenancy renewals Rent reviews Serving and receiving legal notices Tenancy end inspection Tenancy end check out Tenancy end utility transfers Arrange deposit return Revalue and remarket property

1

2

3

4

✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

13

Peace of mind for busy landlords Choose our Full Management Service and all you have to do is sit back and enjoy the rent. Your dedicated Property Manager will take care of everything and keep you fully informed.

Personal service Once your property is let the work doesn’t stop there.

You will have your own Property Manager who will

Today’s tenants can be quite demanding, expecting

look after every aspect of the let and your property

maximum value for their money. Whether it is fridge

throughout the life of the tenancy. Our landlord clients

failure or a leaking shower, you can be sure any tenant

tell us they appreciate the continuity and accountability

will want a swift repair, however inconvenient the timing

of a single point of contact.

may be for you.

Our fee

This is why our clients value our Full Management

Each of our service levels is charged at a different rate

Service where we look after any repairs and tenancy

to reflect the work involved. For our Marketing and

issues for you. For your peace of mind, we also visit

Introduction Only Service the fee is a one off payment of

the property regularly and organise any maintenance

£350.00 (incl. VAT). Our Marketing and Let Only Service is

and safety compliance checks, assuring you that your

£750.00 (incl. VAT). Our Letting & Rent Collection Service

property remains in sound condition and your legal

is ½ a months’ rent plus 6% per month and our

obligations are met.

Full Management Service is ½ a month’s rent plus 12% a month (both plus VAT).

*Prices subject to VAT

Landlord Checklist When preparing to let your property you don’t want to overlook something important. If you feel comfortable with organising and managing the tenancy yourself, use our checklist to help you.

While this is not comprehensive, it should give you a basis for planning the letting process.

Ensure you have a valid Energy Performance Certificate in place or on order before you start marketing your property Obtain consent to let from mortgage lender or lease holder and arrange suitable buildings insurance Check that your Gas Safety certificate is up to date and provide a copy to your new tenants before they move in Ensure any furniture and soft furnishings comply with current fire safety regulations Ensure the electrical system is safe and fit for purpose, and arrange PAT testing of any portable appliances you are providing Check with your local authority to see if you require an HMO (House in Multiple Occupation) licence for your property Ensure the tenancy agreement covers all the required terms and obligations, is legally binding and signed by all parties Prepare a comprehensive inventory and schedule of condition, with photographic evidence Ensure smoke alarms and carbon monoxide detectors are fitted and all are working properly Notify your local authority of the new tenancy details for Council Tax purposes Arrange for all meter readings to be taken and transfer utility bills to the tenant Get a duplicate set of keys cut for each tenant plus an extra set for your own use for property inspections, maintenance checks and repairs Arrange for post to be forwarded on for any previous tenant or occupier of the property Ensure you have registered the deposit with one of the governmentbacked tenant deposit protection schemes Contact HMRC with any questions about self-assessment, or for details about the NRL Scheme if you are living or working overseas

15

Map data Š2015 Google

Chantry Office 99a High Street Marlborough SN8 1HD

01672 514 380 office@slca.net

www.slca.net